Actions

COVID-19 impact: Cutbacks at Allison Transmission

INDIANAPOLIS -- The Covid-19 virus is disrupting business at Allison Transmission.

The company, which has a large plant in Speedway, announced Friday it was "suspending production at select manufacturing facilities beginning March 30."

In a press release, Allison said the steps are being taken "in response to recent disruptions to our supply chain, changes in customer demand and a weaker outlook for the global economy"

Specifics on which facilities would be shutdown and possible layoffs were not announced.

As is the case with many businesses, the impact of COVID-19 will be costly to Allison's bottom line. "Allison cannot predict if or when any further disruptions will occur due to the rapidly changing environment as the COVID-19 pandemic continues to evolve. Possible causes for further disruptions include additional changes in customer demand, further disruptions in supplier deliveries and the impact of government regulations or mandates. Allison believes its future financial results will be impacted, but at this time, the magnitude of those impacts is uncertain," according to the press release.

“Allison’s long-standing commitment to prudent balance sheet management has positioned the company to navigate through this challenging period,” said David S. Graziosi, President and Chief Executive Officer, Allison Transmission. "As of December 31, 2019, the company had $192 million of cash and $595 million of available revolving credit facility commitments."

Copyright 2020 Scripps Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.